Two Oregon marijuana businesses have filed a lawsuit challenging a law approved by voters in November requiring operators to enter labor peace agreements.
According to the lawsuit obtained by MJBizDaily, Bubble’s Hash and Ascend Dispensary are seeking an injunction to halt enforcement of Measure 119, which they allege violates the First Amendment of the U.S. Constitution that prohibits states from passing laws impairing the obligations of contracts.
The plaintiffs also claim Measure 119 – which became law on Dec. 5 – is preempted by the federal National Labor Relations Act (NLRA).
The defendants, according to court documents, include:
- Oregon Gov. Tina Kotek.
- Attorney General Dan Rayfield.
- Oregon Liquor and Cannabis Commission (OLCC) Chair Dennis Doherty.
- OLCC Director Craig Prins.
“Measure 119 denies employees the right to decide for themselves whether or not to join a union and is inconsistent with the NLRA which provides employees with the right not to engage in any union activity,” according to a plaintiff statement emailed to MJBizDaily.
“If enforced, Measure 119 could deny licenses to those cannabis businesses that fail to follow the law and would irreparably harm those businesses and their employees.”
Oregon voters in November overwhelmingly approved Measure 119.
The initiative, sponsored by the United Food and Commercial Workers (UFCW) Local 555, requires cannabis operators in the state to submit a labor peace agreement to regulators before receiving or renewing business licenses.
Several other states, most notably California, require cannabis businesses to have an LPA as part of licensing requirements.
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